Sunday, August 19, 2007

HEICO Corporation And Some Other Winners

Heico Corporation was one stock from the last few weeks which has escaped the effects of the sub-prime events. It shows that there are areas that are not exposed to the financing troubles causing fear and effecting so many other areas of the overall stock market. The action taken by the Federal Reserve on Friday morning provided for a great short covering rally. Will this short covering eventually transform into less emotionally based buying? This will be seen over the following weeks. One thing that is certain right now is that the uncertainty is here to stay and that there will be more bad news coming from funds and others who proved to be too addicted to leverage over the last few years. The smart funds were the first to confess their sins. When will the others come clean and have their accounting information in order to report to their investors? This is a story that will continue until the middle of October.

One way to escape the wild swings of the general market is to keep the focus on companies that have a catalyst and/or exposure to an industry that is insulated from the general swings of the market.

On August 1, 2007 Senator Hagel and Senator Dodd introduced a bill,National Infrastructure Bank Act of 2007, that would streamline the process by which national infrastructure projects are targeted. It would create an independent national bank that would identify, evaluate and help finance infrastructure projects of substantial regional and national significance. Infrastructure projects under the Bank’s jurisdiction would include publicly-owned mass transit systems, roads, bridges, drinking water and wastewater systems, and housing properties. One of the many companies that could benefit from the improvement from the national infrastructure is Valmont Industries. This company deals in metal fabrication and engineering support for a vast array of construction projects. Below is a chart of Valmont Industries, VMI.

Another stock that could benefit from this legislation could be Chicago Bridge & Iron . Keep an ear out for news when congress comes back from their month long vacation!

Some other stocks that performed well last week are below.

Radiant Systems - RADS

Natco Group Inc. - NTG

Flir Systems Inc. - FLIR

Tyler Technologies

Chart Industries - GTLS


HEI - HEICO Corporation, through its subsidiaries, engages in the design, manufacture, and sale of aerospace, defense, and electronics related products and services in the United States and internationally. It operates in two segments, Flight Support Group (FSG) and Electronic Technologies Group (ETG). FSG segment offers jet engine and aircraft component replacement parts, such as combustion chambers, compressor blades, vanes, seals, and various other engine and aircraft parts. It also manufactures specialty aviation and defense components as a subcontractor. In addition, this segment offers hydraulic, pneumatic, mechanical, and electro-mechanical components for the aviation markets. ETG segment provides electronic, microwave, and electro-optical products, including infrared simulation and test equipment, laser rangefinder receivers, electrical power supplies, back-up power supplies, electromagnetic interference and radio frequency interference shielding, high power capacitor charging power supplies, amplifiers, photo detectors, amplifier modules, flash lamp drivers, laser diode drivers, arc lamp power supplies, custom power supply designs, cable assemblies, and high voltage interconnection devices and wire. Its microwave products include isolators, bias tees, circulators, latching ferrite switches, and waveguide adapters that are used in satellites. This segment also offers high-speed interface products, such as telemetry receivers, digital cameras, high resolution scanners, simulation systems, and test systems. The company serves commercial and cargo airlines, repair and overhaul facilities, other aftermarket suppliers of aircraft engine and airframe materials, original equipment manufacturers, military units, and electronic manufacturing services companies, as well as medical, scientific, security, and other companies. HEICO Corporation was founded in 1949 and is headquartered in Hollywood, Florida.

TYL - Tyler Technologies, Inc. provides integrated information management solutions and services for local governments. Its software products are grouped into four areas, including financials, courts and justice, property appraisal and tax, and document management. The company's financial systems include modules for general ledger, budget preparation, fixed assets, requisitions, purchase orders, bid management, accounts payable and receivable, contract management, investment management, inventory control, project and grant accounting, work orders, job costing, payroll, and human resources. Its also offers products that automate various city functions, including municipal courts, parking tickets, equipment and project costing, animal licenses, business licenses, permits and inspections, code enforcement, citizen complaint tracking, ambulance billing, fleet maintenance, and cemetery records management. Tyler Technologies' courts and justice solutions include suite of products to automate, track, and manage the law enforcement and judicial process from the initiation of incidents through the process of arrest, court appearances, and final disposition to probation. The company's property appraisal and tax solutions provide systems and software that automate the appraisal and assessment of real and personal property, including record keeping, mass appraisal, inquiry and protest tracking, appraisal and tax roll generation, tax statement processing, and electronic state-level reporting. Its document management systems record and index information documents maintained at the courthouse, such as deeds; mortgages; liens; UCC financing statements; and vital records, including birth, death, and marriage certificates. The company also offers professional information technology and property appraisal outsourcing services. It operates in the United States, Canada, Puerto Rico, and the United Kingdom. Tyler Technologies was founded in 1966 and is based in Dallas, Texas.

VMI - Valmont Industries, Inc. and its subsidiaries produce fabricated metal products; metal and concrete pole, and tower structures; and mechanized irrigation systems worldwide. The company operates through five segments: Engineered Support Structures, Utility Support Structures, Coatings, Irrigation, and Tubing. The Engineered Support Structures segment manufactures engineered metal structures and components for the lighting and traffic, and wireless communication industries. It offers steel and aluminum poles and structures to which lighting and traffic control fixtures are attached for outdoor lighting applications, such as streets, highways, parking lots, sports stadiums, and commercial and residential developments. This segment also provides solid rod, tubular and guyed towers, poles, and other components for wireless communication and highway sign markets. The Utility Support Structures segment manufactures tapered steel and pre-stressed concrete poles for electrical transmission, substation, and distribution applications. It also produces hybrid structures with a concrete base section and steel upper sections. The Coatings segment provides metal coating services, including hot-dipped galvanizing, anodizing, powder coating, and e-coating. The Irrigation segment manufactures and distributes mechanical irrigation equipment and related service parts, which are used to water crops and deliver chemical fertilizers and pesticides. The Tubing segment produces light-wall welded steel tubing used in various products, including grain handling systems, pneumatic tube delivery systems, fire protection systems, automotive products, and exercise equipment. The company's customers primarily include state and federal governments, contractors, utility and telecommunications companies, manufacturers of commercial lighting fixtures, and farms, as well as companies from general manufacturing sector. Valmont Industries was founded in 1946 and is headquartered in Omaha, Nebraska.

FLIR - FLIR Systems, Inc. designs, manufactures, and markets thermal imaging and infrared camera systems in the United States and internationally. The company operates through three divisions: Thermography, Commercial Vision Systems, and Government Systems. The Thermography division offers products for commercial and industrial applications, where temperature measurement is primary requirement. Its products provide highly sensitive temperature measurement, sophisticated image processing, and extensive analytic capabilities. This division's products are used for predictive and preventative maintenance, research and development, test and measurement, leak detection, scientific analysis, manufacturing process control, building inspection, and thermography applications. The Commercial Vision Systems division offers products for commercial security, automotive, marine, airborne, and first responder markets. This division sells its products through direct, original equipment manufactures (OEMs), and third party distribution. It serves perimeter security, automotive night vision, transportation night vision, marine, electronic news gathering, and law enforcement markets. The Government Systems division provides a range of products, which allow the user to see in total darkness and through various obscurants, such as smoke, haze, and various types of fog. It offers hand-held imaging systems, as well as fixed or vehicle mounted products for land, airborne, and marine applications. This division serves search and rescue, force protection, border and maritime patrol, surveillance and reconnaissance, targeting, federal drug interdiction, military, paramilitary, and police forces markets. FLIR Systems offers its products through direct sales personnel, dealers, distributors, and OEMs. The company was founded in 1978 and is headquartered in Wilsonville, Oregon.

NTG - NATCO Group, Inc., through its subsidiaries, engages in the design, manufacture, and marketing of oil and gas production equipment and systems worldwide. It operates through three segments: Oil and Water Technologies, Gas Technologies, and Automation and Controls. The Oil and Water Technologies segment offers production equipment, including separators, heaters, oil dehydration equipment, water treatment equipment, gas conditioning equipment, and replacement parts. This segment also manufactures built-to-order systems, including integrated oil and gas processing trains, dehydration and desalting systems, offshore production systems, water injection systems, produced water cleanup systems, gas processing equipment, and downstream facilities, as well as wellhead desanders, sand cleaning facilities, sand fluidization, and specialty oil heaters. The Gas Technologies segment manufactures gas-processing facilities for the removal of carbon dioxide from hydrocarbon streams; offers gas processing facilities for the separation, heating, dehydration, and removal of liquids and contaminants to produce pipeline-quality natural gas; and licenses bio-desulfurization technology. The Automation and Controls segment engages in designing, programming, assembling, installing, and commissioning various pneumatic, hydraulic, electrical, and computerized control panels and systems for multiple industries; engineering and instrumentation field services, compliance services, and management services; supervisory control and data acquisition systems that provide remote monitoring and control of equipment, production facilities, pipelines, and compressors via radio, cellular phone, microwave, and satellite communication links. NATCO Group serves independent operators, and international and national oil companies, as well as engineering, procurement, and construction companies acting on behalf of end users. The company was founded in 1988 and is headquartered in Houston, Texas.

GTLS - Chart Industries, Inc. manufactures and supplies engineered equipment used in the production, storage, and end-use of hydrocarbon and industrial gases. It operates in three segments: Energy & Chemicals (E&C), Distribution and Storage (D&S), and BioMedical. The E&C segment offers vacuum-insulated containment vessels, aluminum and air cooled heat exchangers, cold boxes, and other cryogenic components, which are used in the liquid gas supply chain for the purification, liquefaction, distribution, storage, and end-use of hydrocarbon and industrial gases. The D&S segment supplies cryogenic equipment to the bulk and packaged industrial gas markets. This segment's products include cryogenic bulk storage systems; cryogenic packaged gas systems; cryogenic components, including VIP, engineered bulk gas installations, and liquid nitrogen end-use equipment; liquid natural gas and liquid/compressed natural gas refueling systems for fleets operated by metropolitan transportation authorities, refuse haulers, and heavy-duty truck fleets; and beverage liquid carbon dioxide systems that primarily consist of bulk liquid carbon dioxide containers used for beverage carbonation in restaurants, convenience stores, and cinemas, as well as bulk fountain syrup containers. This segment also offers installation, service, and maintenance for cryogenic products comprising storage tanks, liquid cylinders, cryogenic trailers, cryogenic pumps, and VIP. The BioMedical segment manufactures medical respiratory products, including liquid oxygen systems and ambulatory oxygen systems; biological storage systems comprising vacuum-insulated containment vessels for the storage of biological materials; and MRI components that are used to transfer power and/or cryogenic fluids. It has operations in the United States, Australia, the People's Republic of China, the Czech Republic, Germany, and the United Kingdom. The company is headquartered in Garfield Heights, Ohio.

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